Mefttal Ltd. is currently operating at 60% of its total capacity which is 1.5 times than the previous year. The total capacity of the company is…

CA Intermediate · Cost and Management Accounting · MTP · January 2025
Mefttal Ltd. is currently operating at 60% of its total capacity which is 1.5 times than the previous year. The total capacity of the company is 2,00,000 units. Other information relating to the production is provided below: (i) The total cost of production for the current year is 59,28,000, and for the previous year, it was - 44,72,000. (iii) No changes are anticipated in the cost structure for the upcoming years. Selling price is 52 per unit and is expected to remain the same in the coming years. You are required to CALCULATE Break-Even Point (in units).
(A) 1,20,000 units
(B) 40,000 units
(C) 80,000 units
(D) 1,00,000 units

Suggested Answer and Working Notes:

Correct Answer: Option (D)

1,00,000 units

Topics: Marginal Costing, Cost Sheet

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic